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Radix claims 77% renewal rates after two years

Kevin Murphy, November 14, 2017, Domain Registries

New gTLD registry Radix says that three of its larger TLDs have seen a 77% renewal rate two years after launch.

The company said today that .online had 75% renewals, with .tech at 78% and .site at 81%.

It appears to have carved out these three from its portfolio for attention, ignoring the rest of its portfolio, because they all went to general availability in the same two-month period July and August 2015.

The renewal rates are for the first month of GA. In other words, 77% of the domains registered in the TLDs’ respective first month have been renewed for a third year.

Radix, in a press release, compared the numbers favorably to .com and .net, which had a combined renewal rate of 74% in the second quarter according to Verisign’s published numbers.

It’s probably not a fully fair apples-to-apples comparison. Domains registered in the first month of GA are likely higher-quality names registered by in-the-know early adopters, and therefore less likely to be dropped, whereas .com and .net have decades of renewal cycles behind them.

Radix also said that 86% of domains registered during the three TLDs’ sunrise periods and Early Access Periods are still being renewed, with .tech at 92% and .site at 88%.

MMX says .vip renewals to be at 70%+

MMX believes the biggest money-spinner in its new gTLD portfolio, .vip, will see first-year renewals in excess of 70%.

The company said this morning that it is projecting renewals towards the top end of industry norms based on manual renewals to date.

.vip was a bit of a hit in China, topping a quarter-million domains in its first month of general availability a year ago. It peaked at around 750,000 domains a month ago.

MMX said in a statement:

To date, actual deletions for the first 31 days of registrations for .vip from China are currently less than 1%, with manually confirmed renewals for the same period already at over 60%, with the remainder being placed on auto-renew by registrars on behalf of their customers.

Whilst not all of those placed on auto-renew will be renewed, MMX expects the overall renewal rate for the first month of .vip registrations, which will be published in late July, to place .vip in-line with the best-in-class renewal rates of leading western facing top-level domains (i.e. c. 70% and above).

While MMX has made much of the fact that it has not sold .vip names for almost nothing, unlike some competitors, they’re still pretty cheap in China.

.vip names sell for the CNY equivalent of $3 to $4 at the major Chinese registrars. GoDaddy prices them at $20.

CEO Toby Hall said that there had been some volume-based discounts available to registrars, but “nothing which took the pricing below our general availability pricing”.

Its actual renewal rate will become clear at the end of July, MMX said.

Rightside new gTLD renewals can top 80%

Kevin Murphy, October 14, 2016, Domain Registries

Rightside says it is seeing encouraging renewal figures from its oldest batch of new gTLDs.

The company this week revealed that renewals after two years of ownership on average stand at 81%.

In a blog post, Rightside broke out some numbers for .dance, .democrat, .ninja, .immobilien, .social, .reviews and .futbol.

Those seven are the only ones in its portfolio to have gone through two full renewal cycles.

The renewal rate after year one was a modest 69% — in other words it lost almost a third of its installed base after 12 months — but this increased to 81% after the second year.

The actual number of domains involved in quite tiny — 81% equates to just 21,000 names across all seven TLDs.

Breaking out a couple of TLDs, Rightside wrote:

Our first gTLD to market, .DANCE, saw a 70% renewal rate in year one expand to 83% in year two for that same subset of domains. Our best performing gTLD of the seven is .IMMOBILIEN, which renewed at 83% in its first year, and grew to a stupendous 87% in its second—which certainly makes sense given the permanent nature of real estate.

But Rightside reckons the numbers reflect well on the new gTLD industry. It said:

domain investors with portfolios including new gTLDs recognize the long-term value of these domain names, and rather than let them drop after the first year, are holding onto them to find the right buyer continue to earn parking revenue. Second—and likely the more significant driver—is that end users are actually picking up these domain names and putting them to use.

West.cn to prop up .xyz renewals with $1.5 million subsidy

Leading Chinese registrar West.cn has said it will subsidize .xyz renewals to the tune of $1.5 million.

According to a West.cn press release, CEO He Xiaojiang made the announcement alongside XYZ.com counterpart Daniel Negari at meeting in Beijing on Friday.

The registrar’s .xyz customers “are going to get high rebate back from West.cn so that they can get very low renewal fees”, according to a translation of the original Chinese.

The subsidized renewal price, which starts in June, will be RMB 18 ($2.73), according to the company.

That’s about a $7 discount on West.cn’s usual renewal price of RMB 64.

First-year .xyz prices at the registrar are currently RMB 8 ($1.22).

West.cn is believed to have well over a million .xyz domains on its books. With over a third market share, it’s XYZ.com’s biggest registrar.

The press release points out that West.cn is not getting a special rate from XYZ (which would be against ICANN rules).

Negari declined to elaborate on the specifics of the subsidy.

But in what is no doubt a related move, he told DomainInvesting.com yesterday that XYZ has “reserved several million dollars to be spent with registrars and on advertising platforms for our 2 year anniversary”.

This ad spend will be made over the month of June, he said, to coincide with the June 2, 2014 general availability launch of .xyz.

Fifty registrars are participating, he said, calling it the “biggest sale” the industry has seen.

Whether through heavily discounted renewals or bargain first-year regs, it seems the company is set on making sure its DUM volume does not dip as its anniversary approaches.

It’s not unusual for registries to do special offers to coincide with launch birthdays.

.xyz currently has about 2.8 million registered domains, but about 1.8 million of those were registered after June 2015 and are not in need of renewal before the promotion period expires (though registrants can of course renew whenever they like).

Rightside offers $10 renewals on premium names

Rightside is to run a promotion that will discount renewals on premium names down to .com prices.

From May 16 to June 30, if you buy any of the domains that Rightside has marked as premium — except the super-premium “Platinum” names — the wholesale renewal fee will be just $10.

Registrars will mark this up according to their own pricing models.

Normally, the price you pay at the checkout is the price you pay every year after that.

The deal is overtly targeted at domainers.

Rightside said: “At these reduced prices, you’ll have more time to find the right buyer for any domains you register, and incur lower fees to transfer to them once you do. If you’re looking to add high-quality domains to your portfolio, this will be the time to do it.”

The reduced renewals only apply to names registered during the six-week window, but they do pass on to subsequent registrants if the domain is sold.

Rightside is calling it a “first-of-its-kind” promo, but in reality it’s just a temporary regression to the once-standard industry model.

Remember, prior to the 2012-round gTLDs, only exceptions like .tv charged premium rates for renewals.

Premium renewals are now very commonplace, but are by no means the rule, in the new gTLD industry.

For Rightside, the offer means the company may experience a brief cash windfall as domainers, who generally hate premium renewals, take a chance on the registry’s names.

There’s also a potential marketing benefit to be gained from having more domainers on board as unpaid salespeople.

But it does rather suggest the premiums are not flying off the shelves at the rate Rightside wants.

The company recently disclosed that in the first few months of the year it made revenue of $674,610 selling 1,820 premium names, leading to an average price of $372. Twelve five-figure names had been sold.

Over its portfolio of 39 gTLDs, Rightside has flagged over 964,000 as premium, or about 25,000 per TLD.

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